Does Power Lead To Corruption?

temptations of power

There is, however, a major nuance that some men with power
forget. This slip of the mind — or momentary lapse of judgment — can cause them to lose their positions and some of
their stature altogether.

Throughout history, men of influence have had to manage considerable conflicts of
interest because of the positions they have held. For example, the President of the United States holds tremendous power. This power translates to
tremendous stature, which leads to great rewards and perks. Once he leaves office, however, the President's
position fades and his legacy remains undetermined, so his stature can even increase if he plays his cards right —- or
decrease rapidly if he exploits his past achievements.

Corporate leaders are the same way to some
extent: If they act ethically when they hold positions of power, their legacy grows, but many temptations accompany
such positions. If they abuse their power, they may be forced to leave disgracefully and lose most of their stature
along with the benefits that came with it.

Jack Welch, former CEO and Chairman of GE, was offered a ton of stock options in exchange for
postponing his retirement. Instead of accepting the gargantuan offerings, he simply asked the GE board of directors to
extend some of the benefits that came with his position into his retirement. Thus, he would be afforded use of an
apartment in Manhattan and of the GE jet.

The board granted him his wish, which probably ended up costing
them far less than the original stock allocation he was offered. GE probably did not think twice in granting this
request, and neither did most shareholders, who were rewarded handsomely during his tenure. But some critics expressed
dismay... not surprisingly, since that is what critics do.

pick your perks

The lesson here is
that Welch only managed to get into a position where he would be granted such benefits because he used his
"credits" wisely. As a young professional, you have to pick and choose when to reap the benefits of your
position. Jumping on everything that comes your way sets a precedent and serves to mark your territory, but you also
lose considerable stature by doing so, making it more difficult for you to one day obtain a position where such
benefits will naturally flow your way.

I think that the President should be paid a lot of money. Why?
Because if those in power are very well compensated, then there is less of an incentive for them to engage in actions
whereby they will take advantage of their position and stature for excessive personal gain. On a side note, this
explains why many of the people who run for the Presidency are extraordinarily rich. They do not need the money and, if
they did, they would not run for office. The best and brightest minds turn to business because they can improve the
world and make a bundle; that is who you want to run the White House.

Human beings might have finite needs,
but they have infinite wants, as well as a tendency to give in and allow themselves to take advantage of their
positions to get some benefits. It is realistic for someone to leverage their stature to get what they want, but the
more they do this, the more the value of their stature will suffer in the long run.

email of the
week

Editor's note: This reader's e-mail has not been edited and is presented as
is.

I love living and working in the U.S., but I think that the time has come for me to move away,
either to Europe or, preferably, Canada. Do you think such a move is wise and, if so, what do I need to know?

I will assume that the reasons behind your decision have little to do with your actual employment, but more to do
with the things that balance your work. With that in mind, if you are set on moving, then realize that, despite
everything, the U.S. remains the center of capitalism and the heart to its numerous sectors, especially NY and SF.

That being said, these days, you can start anew in numerous cities far away from these financial centers. If
you really want to move, you need to determine whether you are looking to start a new company or work for someone else.
I advise against starting your company in a market you are unfamiliar with; that is too risky.

Before
anything, you need to ask yourself what you need legally in order to make the move. The next step is to find yourself
an employer. If you insist on finding one before your move, the move itself will be less risky, but you will be stuck
with your new employer for a while.

Assuming you have already made up your mind about moving, your ideal
bet, and I stress ideal, is to move and only then look for work. Not only does this approach allow you to
familiarize yourself with the pulse of the local economy, but you will also have a chance to get settled in and meet
more people. Of course, this is not feasible for everybody, but if you can pull it off, it might pay off dividends down
the road, both professionally and socially.